Per the Honble Sri Justice L.Narasimha Reddy

This appeal is preferred under Section 260A of the Income Tax Act, 1961 (for short the Act) by the assessee-appellant assailing the order, dated 04.05.2000, passed by the Hyderabad Bench A of the Income Tax Appellate Tribunal in I.T.A.No.21/Hyd/1996.

The brief facts, that gave rise to the filing of this appeal, are as under:

The appellant is a Company, involved in the activity of construction, particularly of Dams. During the assessment year 1983-84, it claimed the investment allowance under Section 32A of the Act. The Income Tax Officer (ITO), the respondent herein, found the claim to be tenable, and permitted the investment allowance to be absorbed, to the extent possible in that assessment year. Since substantial portion thereof remained unabsorbed, it was carried forward and was partially absorbed for the assessment years 1983-84 to 1986-87. Still some portion thereof remained. It is stated that the appellant sustained losses during the assessment years 1986-87 to 1991-92.

Hence, there was no occasion to absorb the balance of the investment allowance. It was only in the assessment year 1991-92 that the claim was made to permit